Which of the 4 alternative Business Models would be best for protecting personal assets?

LLC

What are the 4 Tools of Entrepreneurship?

Education, Experience, Vision, & Business Plan

T/F: An Artist pays commission to the Manager and Booking Agent from their NET earnings

FALSE

T/F: A Tour Manager’s number one priority is taking care of the Artist on the road

TRUE

T/F: Most Business Managers are also certified public accountants

TRUE

T/F: The Tour Manager is hired by the Artist’s Manager and is paid out of the Manager’s commission

FALSE

T/F: Tour Managers on larger tours are often given an annual salary

TRUE

T/F: It is recommended that an Artist hires an Entertainment Attorney before signing with a manager or management firm

TRUE

T/F: When a Manager signs an Artist to the management firm where they work, the Artist’s commission still goes directly to that Manager and not to the firm

FALSE

T/F: The job for a Tour Manager begins the first day of the tour

FALSE

In industry standards, an AM gets a percentage of the Artist’s earnings from which revenue streams?

concert bookings, publishing, & record sales

In industry standards, a Booking Agent gets a percentage of the Artist’s earnings from which of their revenue streams?

Concert Bookings

At a large management firm, an Artist may be assigned both a Career Manager & a Day-to-Day Manager. What 3 things would most likely be handled by the DTD Manager?

1- spending time in the studio with the artist
2- handling situations w/ the promoter when TM can’t
3- taking the artist to appointments

Out of the 4 functions of Management, which is best defined by “assembling the necessary resources to carry out a plan & put those resources into a logical order”?

Organizing

Which of the 4 functions of Management is best defined by “taking the resources needed to reach goals and use them efficiently to achieve success”?

Leading & Directing

Which of the 4 major powers is an example of “radio programmers have power with their listeners by deciding which songs to play and the # of spins for that song”?

Power of Access

Which of the 4 powers is best defined by “the power of legendary status artists such as Aretha Franklin, MJ, Paul McCartney is found in this”?

Power of Artist’s Body of Work

T/F: Being a manager is immensely time-consuming, but the financial rewards come quickly to make up for all of the hard work

FALSE

T/F: Once you have identified your goals, the next step is to come up with the plan on how to achieve them

TRUE

T/F: One of the controlling functions of management is leading the team to stay on track with the plan

FALSE

Which function of management is monitoring how effectively the plan is being carried & making any necessary adjustments to advance the plan?

Controlling

What is the main focus of the exploitation from the Record Label? Publisher?

Sound recording; the song

What does “All Success Leaves Clues” mean?

It is about the clues that others see; look at people you consider successful and repeat what they did.

What is the focus for an Artist Manager?

To focus on developing long-term goals and careers for their artists.

What are 4 things that managing an artist can be influenced by?

Economy, Technology, Social, Politics

Explain the principle “Power Carries a Responsibility to Give Back”: Give an example

Artists and people who have had success in the music business should use their talent to improve the quality of life of those who need help. This will help aid in efforts to raise money for world hunger, flood/earthquake victims, or pay medical bills for a needy family.

Give a real-world example of what the following statement means: “The agendas of many people on the music business determine whether you matter to them”

It depends whether you are relevant to them or not. If you’re put on the backburner because you’re not on the forefront of their mind, then maybe the market isn’t ready for you or you are already past the market.

What are 3 things that create stress for an Artist Manager?

1- constant pressure to plan & try alternatives
2- when a style prefers order and predictability; they must always be ready to react
3- they are ultimately responsible for every performance; they don’t have set office hours

How many years does a Manager usually spend developing a new artist before seeing any real income from royalties, publishing, or even ticket sales?

3-5 years

Which of the 4 powers are an example of “booking agents have this power because their relationship with prominent promoters & concert venues”?

Power of Access

Which of the 4 powers is an example of “successful tours, music downloads, & songs that find acclaim in their ability to earn give power to those responsible”?

Power of Artist’s Latest Success

Major record labels’ ability to dominate (influence) award show nominees, performers, & even awards can be found in which of the 4 powers?

Power of Money

T/F: Most new artists are unable to pay their manager’s expenses when they start working together

TRUE

How long can record royalties take for an artist to earn from release date?

2-3 years

T/F: Hard work doesn’t guarantee success in the music business, but it is doubtful you will succeed without it

TRUE

Is an artist’s family a gatekeeper?

No

T/F: Money can provide access through any of the Gatekeepers you are trying to get to

FALSE

T/F: An Entrepreneur is someone who has a view for a new business and a new idea of how to make it successful

TRUE

T/F: A broad education of a Bachelor’s is necessary for those wanting to pursue a successful career in the Music Business

FALSE

T/F: A company’s vision statement defines what the company is today

FALSE

T/F: An Entrepreneur’s Vision Statement is an expression of where your business could be in some defined future

TRUE

As an Entrepreneur Manager, a budget for your personal living expenses doesn’t include what?

travel to shows

T/F: Most Artists don’t need a Manager until they are prepared to become a commercial artist

TRUE

T/F: After developing a business plan, it’s recommended that an Entrepreneur Manager should determine how much $ they need to survive for 1 year without making a profit

FALSE

T/F: Among the attributes of the younger generation is having the ability to be very patient in pursuing and achieving success

FALSE

What is the best example of a LONG-TERM goal for a brand new artist?

Headlining a tour

What are 3 examples of SHORT-TERM goals for a new artist who is already signed to a record label?

Recording an album, writing songs, and signing with a booking agency

What are the 4 Market Segmentations?

1- Demographic
2- Geographic
3- Psychographic
4- Behavioristic

Of the 4 Market Segmentations, which is the easiest to identify?

Demographic

Which segmentation is best defined by “dividing a market up by the lifestyle characteristics of music buyers”?

Psychographics

Which segmentation is best defined as “dividing the markets by looking at why consumers engage with a product”?

Behavioristic

A ______ is the artist’s name and everything associated with it

brand

A(n) _______ is the way people feel about the artist

image

Which of the 4 Alternative Forms of Business is “a formal business form that requires filing a charter with a state’s secretary of state”?

Corporation

An Individual’s Right to Publicity means that people have the right to control the commercial EXPLOITATION of their name, image, or likeness

TRUE

Strategies are the things the Artist and Manager do every day to implement the tactics in order to achieve goals

FALSE

After an Artist develops individual strategies, they need to establish a TL to accomplish them

TRUE

T/F: The objective in a meeting with the record label is for the Manager to convince those in the meeting that their Artist is unique and the best new talent out there

FALSE

T/F: The meeting isn’t about you, the Manager, or about the Record Label. The meeting is about the Artist.

FALSE

T/F: The one thing that Ethics and Payola have in common is that they are both regulated by laws

FALSE

T/F: Payola is when someone offers a radio station something of value to play a song without disclosing the payment on their air or to the station manager

TRUE

T/F: Breakeven for the ARTIST means the artist’s fee is equal to the expenses associated with doing the show

TRUE

When both are on a large tour, does the Road Manager take direction from the Tour Manager?

YES

Where would a Manager go to get statistical info on how well the record label is doing as a whole?

All Access

Which of the Basic Fee Structures is “artist gets paid an agreed upon amount; typically done on soft ticket shows”?

Flat Guarantee

Which Basic Fee Structure is described as “artist gets paid an agreed upon percentage of the ticket sales”?

Straight Percentage

What is the total the box office actually takes in for all sales for the event before any expenses have been taken out of the total?

Gross at Settlement

What 3 things would be included as part of the Performance Contract?

technical rider, cancellation clause, advertising approval

T/F: An Artist’s contract with a Record Label is on a non-exclusive basis

FALSE

Does the Record Label provide all financing necessary to create the sound recording for the Artist?

YES

T/F: The expenses being charged to the Artist are payable back to the Record Label ONLY if the recording earns adequate income from the project to pay them

TRUE

T/F: The recording contract requires the Artist to pay for ALL of the costs of recording an album

TRUE

T/F: Artist Advances are “loans” against future anticipated royalties

TRUE

T/F: An Artist Manager is ALLOWED to take commissions on the Artist’s Advance

TRUE

T/F: An Artist Manager CANNOT commission the recording costs used to make the artist’s album

TRUE

T/F: An Artist Manager CANNOT commission the tour support given to the Artist

TRUE

T/F: Royalties paid to the artist from the sale of their single or album, are a percentage of the wholesale price of the recording

TRUE

T/F: Regarding royalty pay-out, singles earn 3/4 the rate of an album

TRUE

If an Artist is paid 10% royalty for each album sold through iTunes, and the wholesale price is $7.00, then the artist earns how much in royalties each time an ALBUM is sold?

(7 x.10)
= 70 cents

If an Artist receives a $25,000 Advance and the Recording costs were $75,000, how much money in commissions would their Manager earn if they were a 20% manager?

(25,000 x .20) = $5,000

(since a Manager cannot commission off of recording costs, and can commission off of an Artist’s Advance)

T/F: An Artist signed to an “all-in” contract means that the specific royalty rate being paid to the artist includes the royalty payment to the producer of the recording

TRUE

T/F: The responsibility of paying the record producer is the artist’s and is done through the artist’s royalty earnings

TRUE

T/F: If an Artist decides to create a music video, they must pay for the entire amount out of their advance

FALSE

T/F: In a record label’s 360 deal, it gives the record company a license to use the artwork created for the album for the other products